CPE Technology Announces IPO to Raise RM179.5 Million

CPE Technology Bhd is gearing up for a major expansion with an initial public offering (IPO) worth RM179.58 million on Dec 7, 2023. The company’s CEO, Lee Chen Yeong, highlighted the importance of listing to speed up growth and potential.

Lee stated that the majority of the proceeds from the IPO will be used to construct new plants and purchase machinery and equipment to meet increasing demand both locally and internationally. The company currently has an unbilled order book of RM69.27 million, indicating strong demand for its services.

To maintain ample supply and mitigate rising shipping costs due to price fluctuation, CPE Technology Bhd also plans to use a portion of the proceeds to purchase raw materials such as stainless steel and aluminum from overseas suppliers.

The breakdown of the IPO proceeds includes RM69.60 million for land acquisition and new plant construction, RM32.88 million for new machinery and equipment, RM17.45 million to repay bank borrowings, RM46.91 million for working capital, RM1.42 million for capital expenditure, and RM11.32 million for listing expenses.

With an issue price of RM1.07 per share and an enlarged issued share capital of 671.31 million shares, CPE Technology Bhd will have a market capitalization of RM718.31 million after the IPO. Malaysia’s total engineering supporting industry (ESI) was worth RM9.98 billion in 2023, with CPE Technology having a 1.55 percent share of the market, generating revenue of RM145.35 million. Looking ahead, the company emphasized the growth potential of the ESI, projecting a compounded annual growth rate of 8